Fast train, slow profit: Indonesia's Whoosh hits a money bump

Straits Times

a day ago

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The trains servicing the route can reach 350kmh, though their speed varies along the journey – with the passengers hearing only a whisper-soft hum.
JAKARTA – Hardly making any noise, the bullet train hurls past West Java's rice fields as it races from the nation's capital towards Bandung, Indonesia's third-largest city.
This is Whoosh, the country's – and South-east Asia's – first high-speed rail service, with the trains able to cover the 142km separating the two cities in just 45 minutes.
The trains servicing the route can reach 350kmh, though their speed varies along the journey – with the passengers hearing only a whisper-soft hum.
Twelve trainsets, including one for inspection, operate on the line. All were designed and built in China but customised for Indonesia's tropical climate and seismic risks.
Whoosh has largely lived up to its name since it was launched in October 2023.
The sleek red-and-silver trains glide in and out of stations with clockwork precision. Inside, plush reclining seats, carpeted floors, digital displays and attendants in crisp uniforms create an air of calm efficiency as they guide passengers and help with luggage.
'I'm so proud of Indonesia's progress; the ride is so smooth, quiet and fast,' says Ms Eka Rani, a 36-year-old marketing officer, as she settles into her seat on the train from Jakarta.
'The ride is too short to spend time working on my laptop, so I shall just relax and enjoy the scenery.'
The journey begins at Halim station in Jakarta and ends at Tegalluar Summarecon station on the outskirts of Bandung, with brief stops at Karawang and Padalarang along the way.
By June, Whoosh had ferried more than 10 million passengers on some 30,000 trips.
And in a country long plagued by congested roads and ageing railways, it became a symbol of Indonesia's infrastructure ambitions.
A flagship initiative under former president Joko Widodo and part of China's Belt and Road Initiative, Whoosh slashed travel time between Jakarta and Bandung, a journey that would otherwise take around three hours by car or regular train.
But the speed and sleekness belie a sobering fact: Whoosh is bleeding money.
Losing steam
Whoosh is an acronym for Waktu Hemat, Operasi Optimal, Sistem Handal – meaning Time-Saving, Optimal Operation, Reliable System.
Built at a cost of US$7.3 billion (S$9.4 billion), the Jakarta-Bandung high-speed rail was funded largely through loans from the China Development Bank. Operated by Kereta Cepat Indonesia China (KCIC), the project was a joint venture between Indonesian and Chinese state firms.
The Indonesian stake was held by Pilar Sinergi BUMN Indonesia (PSBI), a consortium led by state rail operator Kereta Api Indonesia (KAI).
Commuters taking a 20-min feeder train to the Bandung city centre after their Jakarta-Bandung journey on Whoosh train on July 30.
ST PHOTO: ARLINA ARSHAD
In 2024, PSBI posted losses of 4.19 trillion rupiah (S$330 million), according to KAI's financial report. KAI, as PSBI's majority shareholder, accounted for 2.23 trillion rupiah of that amount.
The Chinese side has not released its figures, though analysts believe their books are similarly in the red.
Whoosh is bleeding money due to a combination of massive construction debt, low passenger numbers and high operating costs. Its remote station locations and weak feeder links have also made it less attractive to daily commuters.
Indonesia's newly established sovereign wealth fund, Danantara, has stepped in to help address the mounting debt.
'We are currently reviewing operational matters and considering long-term solutions to address the consortium's substantial debt,' Danantara chief operating officer Dony Oskaria told lawmakers during a parliamentary hearing on July 24.
He added that several proposals would be submitted to the government.
Bank Permata chief economist Josua Pardede said Whoosh's losses stemmed largely from underwhelming ridership.
Between October 2023 and December 2024, the train averaged just over 16,000 passengers daily – barely half its 31,000 target.
Cost overruns also inflated financial projections.
'The resolution plan through Danantara, which involves restructuring debt, is indeed necessary, given the large financial burden caused by cost overruns and not meeting the revenue target,' he told ST.
Between October 2023 and December 2024, the train averaged just over 16,000 passengers daily – barely half its 31,000 target.
ST PHOTO: ARLINA ARSHAD
But some observers remained sceptical that Danantara could pull the project out of debt.
'From the start, the construction expenditure was too big,' said Mr Ki Darmaningtyas, a transport analyst from the Strategic Transportation Initiative (Instran), a non-profit focused on transportation development.
He added that ticket revenue was not enough to cover all the operational costs of the service.
'Perhaps ticket revenue only covers electricity and basic maintenance – maybe not even that. Let alone staff salaries and other expenses.'
Like it or not, he said, the state ultimately has to shoulder the burden. He explained that Danantara's funds come from the national budget, as well as from loans and bond issuances used to finance projects and manage debts.
'Where will the money come from? Debt again. It is just digging a hole to fill another – 'gali lubang, tutup lubang',' he told The Straits Times, using an Indonesian proverb.
Not cheap, not seamless
Whoosh fares range from 200,000 to 600,000 rupiah (S$16 to S$47) depending on class and time – a stretch for daily commuters, students and lower-income workers.
While the onboard experience is polished, first- and last-mile connectivity remain a work in progress.
From Padalarang station, the third of four stations, passengers bound for Bandung's city centre have to transfer to a slower feeder train that takes another 20 minutes. Others scramble for directions or try to book a taxi or Grab ride.
The seamlessness ends there.
While Jakarta's Halim station offers food outlets from Starbucks and Texas Chicken to Subway, the selection at Padalarang can be counted on one hand.
While the onboard experience is polished, first- and last-mile connectivity remain a work in progress.
ST PHOTO: ARLINA ARSHAD
Dr Muhammad Zulfikar Rakhmat, a researcher at the Centre of Economic and Law Studies, said weak feeder links and high fares limit Whoosh's appeal.
'High fares after the promotional period and weak feeder transport links, especially at Karawang and Padalarang stations, make it less attractive for daily commuters,' he told ST.
Still, he believed Danantara's restructuring could ease pressure on KAI and its partners 'if implemented effectively', with sustainable strategies such as boosting ridership, improving feeder links, and diversifying revenue through advertising, retail leases and park-and-ride facilities.
Eyeing future Surabaya extension
Despite the deep losses, the government has pressed on with plans to extend Whoosh to Surabaya in East Java.
On July 1, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono called the Jakarta-Surabaya high-speed rail 'a game changer' and one of President Prabowo Subianto's key priorities.
'If the Jakarta-Surabaya HSR can be realised... it will not only improve intra-regional connectivity, but also boost the local economy,' he was quoted as saying by The Jakarta Post.
The Jakarta-Surabaya high-speed rail extension has been included in Indonesia's National Railway Master Plan, but progress has stalled due to incomplete regulations, and chiefly the absence of a supporting presidential regulation.
Once the regulation is issued, joint feasibility studies with China are expected to begin.
A pre-feasibility study is currently being prepared, exploring three possible routes: southern, central and northern Java. The government aims to cut travel time from Jakarta to Surabaya from 10 hours to just 3½ hours, with fares expected to be more affordable than for the existing Jakarta-Bandung high-speed line.
Mr Pardede acknowledged that the route would connect Indonesia's two largest cities and could see stronger demand.
But he cautioned: 'The extension of the line to Surabaya must certainly begin with a detailed feasibility study that comprehensively considers costs and benefits.'
And he added: 'The government should not use the state budget to build this high-speed rail so as not to increase the fiscal burden.'
Dr Zulfikar also warned that expanding the line could bring further costs, rising debt, and underutilised infrastructure.
Mr Darmaningtyas was more blunt. 'The extension will be a burden on the state for life,' he said. 'Please do not go ahead with the plan. If the government does not want to be burdened forever, it must cancel the expansion.'
Political legacy
Mr Darmaningtyas said the high-speed rail was more of a political trophy than a transport necessity.
He noted that regular trains between Jakarta and Surabaya were rarely full outside weekends and holidays. 'So, who would take the high-speed train?' he said.
He added that existing toll roads and train lines connecting Bandung to Surabaya already met travel needs, questioning the urgency of a new link.
Mr Darmaningtyas also flagged conflicting policies.
'The government built two new toll roads between Jakarta and Bandung even as it promoted rail travel. That just encourages people to drive instead,' he said.
To him, Whoosh was less about serving commuters and more about cementing a political legacy for Indonesia's leaders.
'They just want to prove something. They never think about sustainability,' he said.
'When Jokowi was president, what mattered was that he built a high-speed train. Whether it burdens the country or not is someone else's problem – the next president's problem.'
Bandung-based make-up artist Lenny, 43, said that while she loved her fast rides, the project felt half-finished.
'Transport is costly, I get that. But if stations were in the Jakarta and Bandung city centres, more people would use the train,' she said.
'As usual, we aim for the stars, but get lost in the sky. Strong ambition, poor execution.'